Gundogan’s proposed move to City was plunged into doubt after he dislocated his knee last week according to the Independent newspaper.
The Daily Star report that the Sky Blues have opened talks with Kante’s representatives following the France international’s stellar season.
Kante has been one of the players of the season after guiding Leicester City to the Premier League title.
The Manchester Evening News report that the transfer was close to completion with City agreeing personal terms with Gundogan.
The report goes onto state that it is unclear whether the injury will affect the Citizen’s plan to sign him over the summer.
SkySports have reported that the Bundesliga club want to resolve the Gundogan situation as soon as possible after losing their captain Mats Hummels to Bayern Munich.
Gundogan came came close to leaving the Bundesliga giants last summer but opted to sign a two year extension.